December 2019 Meeting Minutes

Open­ing:

The Board Meet­ing of the Pana­ma City-Bay Coun­ty Air­port and Indus­tri­al Dis­trict was called to order at

9:00 a.m., Decem­ber 18, 2019 by Chair­man Lee.

The Invo­ca­tion was giv­en by Mr. Russ Mathis.

The Pledge of Alle­giance was led by Chair­man Lee.

The Exec­u­tive Sec­re­tary called the roll and indi­cat­ed all the Board mem­bers were present except Vice

Chair­man Glen McDon­ald, Mr. Ken Nel­son and Mr. James Johnson.

Chair­man Lee intro­duced new Board Mem­ber, Hol­ly Melzer.

Mr. Tusa made a motion to accept the Agen­da. Mr. Math­is sec­ond­ed the motion. The vote was

tak­en and the motion passed unanimously.

Reports:

Mr. Park­er McClel­lan pre­sent­ed and reviewed the Activ­i­ty Reports and a dis­cus­sion ensued.

Con­sent Agenda:

a. Board Meet­ing Min­utes – Novem­ber 20, 2019

This item pro­vid­ed for Board approval of the Novem­ber 20, 2019 Board Meet­ing Minutes.

b. Approve Men­zies Avi­a­tion 2020 Budget

This item pro­vid­ed for Board approval of the 2020 O&M bud­get for Men­zies Aviation.

The Air­port owns and oper­ates three fuel farms: the avi­a­tion fuel farm con­sists of four 50,000-gallon Jet‑A

tanks, four 15,000 avgas tanks, one 1,000-gallon diesel tank and one 1,000-gallon unlead­ed tank; the rental

car facil­i­ty con­sists of one 15,000-gallon tank and one 5,000-gallon tank for unlead­ed gas; and the Airport

main­te­nance fuel farm con­sist­ing of one 4,000-gallon tank for diesel and one 4,000-gallon tank for

unlead­ed.

The con­tract for man­age­ment, main­te­nance and oper­a­tion of the fuel farm facil­i­ties was award­ed to

Men­zies Avi­a­tion in 2019. The ini­tial con­tract term is for five years. There is a sep­a­rate agreement

between the air­lines and Men­zies for ​“into plane” fueling.

The con­sol­i­dat­ed Avi­a­tion fuel farm pro­vides the Dis­trict with full con­trol over the tanks and limits

envi­ron­men­tal impacts by hav­ing the fuel tanks in cen­tral­ized loca­tions. Rev­enue paid to the Dis­trict by

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the oper­a­tors of the fuel farm includes debt ser­vice for the cost of the fuel facil­i­ty and O&M costs for

oper­a­tion of the fuel farm. Cur­rent­ly, the five avi­a­tion com­pa­nies that use the fuel farm are American

Air­lines, Delta Air Lines, South­west Air­lines, Unit­ed Air­lines; and Sheltair Avi­a­tion, the fixed base

oper­a­tor on the Airport.

The rental car fuel facil­i­ty is locat­ed at the quick turn­around facil­i­ty (QTA).

The bud­get pro­posed for 2020 is $545,272. The 2020 bud­get includes $139,714 paid to the Dis­trict for

debt ser­vice for con­struc­tion of the fuel farm used by Men­zies. O&M expens­es are paid by the users of the

fuel farm with the Air­port Dis­trict receiv­ing debt ser­vice pay­ments in the amount of $139,714 annually.

c. Approve Vehi­cle Pur­chase – Gar­ber Chrysler Dodge Truck Inc.

This item pro­vid­ed for Board approval for the pur­chase of one (1) replace­ment police vehi­cle to be used by

Air­port Police personnel.

The vehi­cle to be replaced is:

2007 Ford 4^d Vin: 2FAHP71W07X140447, 130,000 miles

This pur­chase is pro­vid­ed for in the Airport’s FY20 Air­port Police Cap­i­tal Improve­ment Bud­get. The

equip­ment is being pur­chased through a State of Flori­da Motor Vehi­cles Con­tract # 25100000−19−1 valid

for the peri­od of 11/17/2019 through 11/16/2020. The deliv­ery of the vehi­cle is includ­ed in the price.

Staff rec­om­mends Board approval of the vehi­cle pur­chase, as described above, from Gar­ber Chrysler

Dodge Truck Inc., in amount not to exceed $28,000 and the dis­pos­al of the 2007 Ford 4^d vehi­cle being

declared as sur­plus property.

d. Approve Vehi­cle Pur­chase – Duval Ford, LLC

This item pro­vid­ed for Board approval for the pur­chase of a replace­ment vehi­cle to be used by Airport

per­son­nel.

This pur­chase will replace a 2007 Ford Tau­rus cur­rent­ly in use. The new vehi­cle will be sized and

equipped so as to pro­vide oper­a­tional, as well as, admin­is­tra­tive sup­port. It will be sized to hold up to 8

indi­vid­u­als to accom­mo­date tours and VIP vis­its and will be equipped with radios and light­ing to support

air­field oper­a­tions and emergencies.

This vehi­cle pur­chase is pro­vid­ed for in the Airport’s FY20 Air­port Oper­at­ing and Cap­i­tal Improvement

Bud­get. The equip­ment is being pur­chased through a State of Flori­da Motor Vehi­cles contract.

Staff rec­om­mends Board approval of the vehi­cle pur­chase, as described above, from Duval Ford, LLC, in

amount not to exceed $42,500 and the dis­pos­al of the exist­ing Ford Tau­rus vehi­cle, as surplus.

e. Approve Change Order Num­ber One (1) – Wild­lands Fire Ser­vices, Inc.

This item pro­vid­ed for Board approval of a Change Order to the Wild­lands Fire Ser­vices, Inc. –

Envi­ron­men­tal Mit­i­ga­tion con­tract to pro­vide for unfore­seen mit­i­ga­tion activ­i­ties result­ing from Hurricane

Michael.

Wild­lands Fire Ser­vices, Inc. is cur­rent­ly under con­tract with the Air­port to per­form ongoing

envi­ron­men­tal mit­i­ga­tion ser­vices on more than 9,600 acres of mit­i­ga­tion prop­er­ty locat­ed south of the

Air­port.

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As part of the orig­i­nal per­mit process, the Air­port is com­mit­ted to the long-term off-site mitigation

con­sist­ing of the restora­tion of approx­i­mate­ly 9,600 acres of prop­er­ty in close prox­im­i­ty of the Airport.

The ini­tial mit­i­ga­tion com­menced in 2008 through a 5‑year con­tract with St. Joe Tim­ber­lands Company

and con­tin­ued through two 3‑year con­tracts with Wild­lands Fire Ser­vices. Right after the ini­ti­a­tion of the

3^rd year of the recent 3‑year con­tract, Bay Coun­ty was hit by Hur­ri­cane Michael. The hur­ri­cane did

sig­nif­i­cant dam­age to the mit­i­ga­tion area which includ­ed blown down trees, both ful­ly and par­tial­ly, which

impacts the abil­i­ty to per­form pre­scribed burns due to lim­i­ta­tion of access to many areas and adding

sig­nif­i­cant fuel source to the ground cov­er, there­by chang­ing the dynam­ics of the burn­ing efforts. It also

dam­aged access roads, low water cross­ings, nat­ur­al streams and ditch­es and lit­tered the roads and shoreline

with sig­nif­i­cant debris.

Wild­lands mit­i­ga­tion efforts were put on hold while ZHA and ERC per­formed a Hur­ri­cane Damage

Assess­ment. The assess­ment quan­ti­fied the dam­ages and deter­mined we need­ed a real time eval­u­a­tion of

the costs to restore the dam­aged areas and return the mit­i­ga­tion areas to their state pri­or to the hurricane.

To do so, ERC iden­ti­fied the affect­ed areas by major, medi­um and minor impacts and uti­lized Wild­lands to

per­form mit­i­ga­tion clean up and burn­ing activ­i­ties in each of the area to deter­mine the pre­mi­um associated

with deal­ing with the impact­ed con­di­tions. ERC mon­i­tored and doc­u­ment­ed the asso­ci­at­ed pre­mi­um costs

and uti­lized those costs to devel­op pro­ject­ed costs and time­frames to return the area to its state pri­or to the

hur­ri­cane. This process took the bet­ter part of Wild­lands’ last con­tract year. The iden­ti­fied pre­mi­um costs

con­sist­ed of removal of trees to access burn areas, cre­ation of addi­tion­al fire breaks, State Forestry

Depart­ment lim­i­ta­tions on burn area sizes and avail­abil­i­ty of local work­force to per­form the work.

As Wild­lands was in their final year of their con­tract and the plan was to solic­it for anoth­er mul­ti-year bid,

ZHA and Staff rec­om­mend­ed extend­ing Wild­lands’ con­tract by one year to fur­ther quan­ti­fy the ongoing

pre­mi­um costs and allow the local mar­ket to adjust fol­low­ing the impacts of Hur­ri­cane Michael. Based on

Fed­er­al guide­lines, the Air­port is per­mit­ted to increase a con­tract by up to 25% for sim­i­lar work with

changed con­di­tions with­out going through the Sup­ple­men­tal Agree­ment process. ERC identified

mit­i­ga­tion areas most appro­pri­ate for main­tain­ing per­mit com­pli­ance and pre­pared a work plan for

Wild­lands to execute.

The cost of this Change Order is $195,757.50 which will increase the Wild­lands con­tract from

$783,263.00 to $979,020.50.

Fund­ing for the Envi­ron­ment Mit­i­ga­tion Ser­vices con­tract is cur­rent­ly cov­ered by the Air­port Bud­get and

Fed­er­al Avi­a­tion Admin­is­tra­tion in an Air­port Improve­ment Pro­gram Grant. Fund­ing for the Change

Order is avail­able in the Air­port Bud­get and from the Fed­er­al Avi­a­tion Admin­is­tra­tion under exist­ing grant

pro­vi­sions.

Mr. Math­is made a motion to accept the Con­sent Agen­da, and Mr. Tusa sec­ond­ed the motion. The

vote was tak­en and the motion passed unan­i­mous­ly, except for Ms. Melz­er abstain­ing from

approv­ing the Novem­ber Board Meet­ing Min­utes because she was not a Mem­ber of the Board yet

and had not attend­ed that Meeting.

Busi­ness Items:

a. All­state Con­struc­tion, Inc. – Guar­an­teed Max­i­mum Price (GMP) Amend­ment for Terminal

Expan­sion Project Mod­u­lar Build­ing Construction

ZHA Pres­i­dent Mr. Rick Mellin addressed the Board and sum­ma­rized the Guar­an­teed Max­i­mum Price

(GMP) Amend­ment to All­state Construction’s Agree­ment for the pro­posed Ter­mi­nal Expansion

Con­struc­tion Project Mod­u­lar Build­ing Com­po­nent. This item pro­vid­ed for Board approval of that

Amend­ment.

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At the Octo­ber 30, 2019 Board Meet­ing, the Board accept­ed Staff’s rec­om­men­da­tion for Construction

Man­ag­er at Risk (CM@R) ser­vices for the Ter­mi­nal Expan­sion Project from All­state Con­struc­tion, Inc.

and autho­rized the Chair­man and Staff to pro­ceed with con­tract and work items asso­ci­at­ed with the

Project.

As the over­all project sched­ule is extreme­ly tight, Staff and ZHA met with All­state on Octo­ber 31^st to go

over expec­ta­tions and to pro­vide clar­i­fi­ca­tions regard­ing scope. Staff request­ed All­state pre­pare a schedule

and bud­get that would achieve project objec­tives and to iden­ti­fy any activ­i­ties that would require Board

approval before final­iz­ing the project over­all Guar­an­teed Max­i­mum Price. It was acknowl­edged that

autho­riz­ing the design and fab­ri­ca­tion of the mod­u­lar build­ing com­po­nent would require ear­ly approval,

while allow­ing more thor­ough bid­ding and vet­ting of the oth­er project com­po­nents to achieve optimum

project costs and project schedule.

This Amend­ment to the All­state Agree­ment pro­vides for a Guar­an­teed Max­i­mum Price (GMP) for the

mod­u­lar build­ing con­struc­tion por­tion of the over­all Ter­mi­nal Expan­sion Project. The mod­u­lar build­ing is

a time-crit­i­cal item with the longest lead time for the project. Fab­ri­ca­tion work on the mod­u­lar building

needs to begin quick­ly in order to meet Airport’s estab­lished con­struc­tion objectives.

All­state has sub­mit­ted a GMP for the mod­u­lar build­ing design, fab­ri­ca­tion and instal­la­tion in the not-toex­ceed amount of $1,661,400.

Giv­en the crit­i­cal need for com­ple­tion of this project in a time­ly basis, Staff rec­om­mend­ed the ini­tial GMP

amend­ment to the CM@R con­tract with All­state Con­struc­tion be approved in an amount not-to-exceed

$1,661,400. Amend­ment costs will be includ­ed in the Ter­mi­nal Expan­sion Project, which is funded

through a FAA AIP Grant and bud­get­ed Air­port funds.

Mr. Math­is made a motion to approve the All­state Con­struc­tion Guar­an­teed Max­i­mum Price

(GMP) Amend­ment for Ter­mi­nal Expan­sion Project Mod­u­lar Build­ing Con­struc­tion, and Ms.

Melz­er sec­ond­ed the motion.

b. Approve ZHA Incor­po­rat­ed (ZHA) – Pro­fes­sion­al Engi­neer­ing, Archi­tec­tur­al, Project

Inspec­tion, Con­struc­tion Man­age­ment and Plan­ning Ser­vices Agree­ment – Annu­al Review

ZHA Pres­i­dent Mr. Rick Mellin addressed the Board and report­ed on their con­tin­u­ing Ser­vices for ECP.

This item pro­vid­ed for Board approval of the Annu­al Review for ZHA Incor­po­rat­ed (ZHA) as pro­vid­ed in

the Pro­fes­sion­al Engi­neer­ing, Archi­tec­tur­al, Project Inspec­tion, Con­struc­tion Man­age­ment and Planning

Ser­vices Agreement.

On Jan­u­ary 27, 2016, the Air­port Author­i­ty entered into an Agree­ment with ZHA to pro­vide engineering,

archi­tec­tur­al, project inspec­tion, con­struc­tion man­age­ment and plan­ning ser­vices. The agree­ment has a

five (5) year term with an annu­al review of their per­for­mance and review of the ser­vices provided.

Since the estab­lish­ment of this Agree­ment, ZHA has per­formed and com­plet­ed numer­ous tasks for the

Air­port Author­i­ty. The projects have ranged from pro­vid­ing and ensur­ing envi­ron­men­tal over­sight and

com­pli­ance, pro­vid­ing plan­ning ser­vices on mul­ti­ple ongo­ing air­port con­struc­tion projects, and providing

design and con­struc­tion over­sight of ongo­ing projects.

ZHA and their Team have con­tin­ued to help to main­tain a pos­i­tive and suc­cess­ful rela­tion­ship between the

Air­port and the Flori­da Depart­ment of Envi­ron­men­tal Pro­tec­tion (FDEP), the Flori­da Depart­ment of

Trans­porta­tion (FDOT), the US Army Corps of Engi­neers (USACE), the Fed­er­al Emer­gency Management

Agency (FEMA) and the Fed­er­al Avi­a­tion Admin­is­tra­tion (FAA).

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Dur­ing this past year, ZHA has assist­ed Staff with the State and Fed­er­al assis­tance as it relat­ed to the

FEMA and the FAA, devel­op­ment of Ter­mi­nal Expan­sion options, mit­i­ga­tion efforts, Hur­ri­cane Michael

relat­ed issues, Access Con­trol Upgrades, eco­nom­ic devel­op­ment project alter­na­tives, design of aircraft

park­ing ramps and asso­ci­at­ed taxi­ways and the asso­ci­at­ed bid­ding doc­u­men­ta­tion and review, as well as

oth­er projects.

ZHA con­tin­ues to work in the best inter­est and in sup­port of the Dis­trict and the Staff. Fund­ing is

avail­able in the FY20 Oper­a­tions and Main­te­nance Bud­get for this Agreement.

Mr. Math­is made a motion to approve the ZHA Agree­ment Annu­al Review, and Ms. Melzer

sec­ond­ed the motion.

The Bay EDA Update:

Bay EDA Pres­i­dent Bec­ca Hardin addressed the Board and report­ed on her trip with Mr. McClel­lan to

Lithua­nia to meet with a prospect from the annu­al MRO Europe tradeshow in Lon­don. She report­ed that

this prospect – named Project Venus – would need approx­i­mate­ly 140,000 square feet and have an

esti­mat­ed 300 employ­ees. Ms. Hardin added that she and Mr. McClel­lan were intro­duced to another

com­pa­ny while in Lithua­nia who is also very inter­est­ed in the Air­port prop­er­ty and both will be vis­it­ing the

U.S. in March or April.

Ms. Hardin also report­ed on GKN Aerospace’s deci­sion to leave Ven­ture Cross­ings – a deci­sion not

because they could not get the work­force (they were very hap­py with the work­force they got and the high

lev­el of skills they were receiv­ing through the retired mil­i­tary), and not because of Hur­ri­cane Michael – but

it was a deci­sion made by the com­pa­ny who bought GKN and the strate­gic direc­tion they are taking.

Ms. Hardin con­clud­ed by say­ing that tomor­row the exec­u­tive team for Project Mas­ter­mind would be flying

in to Tal­la­has­see, and by the first of the year we should know more on the sta­tus of that project.

The Moore Agency Update:

Ms. Katie Spill­man of The Moore Agency report­ed on their Novem­ber mar­ket­ing and adver­tis­ing activity.

Ms. Spill­man report­ed that they ran two paid dig­i­tal cam­paigns on Face­book and one paid cam­paign on

Google. She said that the two cam­paigns are ​“always on” tar­get­ing peo­ple who are active­ly look­ing at

book­ing a flight or vis­it­ing the ECP website.

Ms. Spill­man report­ed on an addi­tion­al Face­book cam­paign with a hol­i­day-themed cre­ative, targeting

peo­ple inter­est­ed in trav­el­ing, result­ing in a 156% increase in impres­sions when com­pared to Octo­ber. She

said this indi­cat­ed a great gen­er­al aware­ness growth among a new audience.

Ms. Spill­man report­ed shar­ing the news sur­round­ing Unit­ed Air­lines’ deci­sion to add more non­stop flights

in the spring, and as a result, more than 66,000 earned media impres­sions were garnered.

Ms. Spill­man report­ed that in Novem­ber, there were 537 air­line web­site click con­ver­sions and 151 assisted

con­ver­sions; 4,187 Escape page views; 15,154 new web­site vis­i­tors; 32,624 total ses­sions; and 392,478

earned media impres­sions. Ms. Spill­man said the best per­form­ing cre­ative was our hol­i­day campaign

launched in Novem­ber that drove up aware­ness and deliv­ered a larg­er increase in impres­sions, with 97

con­ver­sions.

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State Road 388 Con­struc­tion Update:

Mr. Richard McConnell addressed the Board and report­ed that wick drains are still being installed in

antic­i­pa­tion for upcom­ing sur­charge, every­thing is on sched­ule if not ahead of sched­ule, and there has been

a planned slow down for the hol­i­day sea­son to be fol­lowed up with the project kick­ing into full gear at the

begin­ning of the new year. Mr. McConnell added that con­trac­tors deter­mined tem­po­rary light­ing fixtures

would not be suf­fi­cient because of the length of time for the project, and there­fore have sub­mit­ted a

Change Order to the State for a more semi-per­ma­nen­t/per­ma­nent light­ing solu­tion bring­ing pow­er across

S.R.388 to the Air­port Entrance inter­sec­tion. Mr. McConnell con­clud­ed that light­ed sign instruct­ing east­bound trav­el­ers where to turn left has been installed to help pre­vent them from dri­ving past the Entrance.

Exec­u­tive Direc­tor Report:

Mr. McClel­lan addressed the Board and report­ed on the upcom­ing Super Sum­mer Week­ends. McClellan

also report­ed that South­west Air­lines will be adding a non-stop to Atlanta dur­ing the sum­mer; the

begin­ning of the new year will see more action on the E‑1 Taxi­way and Ramp Project; and the St. Joe

Com­pa­ny will have a ground-break­ing cer­e­mo­ny for the Hilton Gar­den Inn on the cor­ner of West Bay

Park­way and Ven­ture Cross­ings tomor­row morn­ing. McClel­lan also report­ed that the Cov­ered Park­ing Lot

will be tem­porar­i­ly clos­ing for repairs begin­ning Jan­u­ary 1 and sig­nage will be installed next week to that

effect, and that a tem­po­rary timed-shut­tle will be added. McClel­lan con­clud­ed that Staff con­tin­ues to work

with the air­lines nego­ti­at­ing their 5‑year con­tract expect­ed to come before the Board at the May 2020

Board Meet­ing.

Mr. Math­is report­ed that he has had sev­er­al requests from pas­sen­gers ask­ing for larg­er flight-monitoring

boards.

Pub­lic Comments:

There were no pub­lic comments.

Adjourn­ment:

The meet­ing was adjourned at approx­i­mate­ly 9:50 a.m.

________________________________ ________________________________

Kathy Gilmore, Exec­u­tive Sec­re­tary Del Lee, Chairman